(MarketWatch) Shares of Countryside Properties soared more than 20% in premarket on Monday after Inclusive Capital Partners’ bid to acquire the company at 295 pence.
At the offer price, the bid values Countryside at about 31% premium to the share’s closing price of 238.60 pence on Friday. The offer values the public sector housebuilder at 1.5 billion pounds.
The bid became public after the Countryside board rejected two confidential offers by Inclusive Capital, which already has a 9.2% stake in the company. Inclusive Capital said it believes that Countryside shareholders deserve an opportunity to exploit the merits of any offer.
Inclusive Capital also believes that a possible offer would provide the company’s shareholders with transaction certainty in the wake of rising market volatility, and macro and business risks.
The acquirer further states that Countryside would be able to execute its turnaround strategy better in the private markets. This follows a stock tumble that has seen more than half of its value wiped out in the past year.
CSP:LON is up +20.62%.
